True to the original format – John Krasinski’s Some Good News – the goal of this series is to share some upbeat happenings from past weeks to the midst of all of the crisis alerts. As we all know, it’s currently very tough out there. It’s alright to look for the silver lining every now and then :)
While some industries have experienced a withdrew in marketing ventures, the gaming industry continues to attract more marketers to tap into increased momentum. Video game retailers such as Gamefly, PlayStation Store, G2A, Steam and Game Stop have been in front of the line to up their ad spend, despite April being usually a quiet period for new releases.
Although it isn’t exactly surprising to see corona-friendly activities such as gaming, streaming and esports thriving, it is encouraging to see that amidst the economic downturn the year-on-year ad spend was up +18% in the US markets.
Few generations have been as choosy as millennials with their brand and product preferences, which have led to a steep decline in demand of e.g. American cheese, cereal and golf product categories. But as the consumption preferences have changed, consumers have “refound” product categories that help them to make their “home restaurant” a bit fancier, avoid too frequent trips to the store or replace “risky” free time activities with no-contact sports.
If marketers pay attention now, and adjust supplies accordingly, they could continue to win in these areas post-pandemic, experts say. “It’s now creating a marketing opportunity,” says Andy Mantis, chief business officer of 1010reveal at 1010data, which provides analytical intelligence to the financial and retail markets, noting that categories gaining ground now could be highlighted in marketing promotions.
Sometimes you have to take matters into your own hands. This has been certainly the case for Madison Reed, a hair color company that has seen a sharp demand uplift during the coronavirus epidemic. “Right from when the majority of states went into shelter-in-place we saw at first a 7x increase, then a 10x increase, and then a 12x increase, and now that’s kind of leveled off and we’re back to about an 8x increase and that’s kind of held,” Madison Reed Founder and CEO Amy Errett says.
Since the coronavirus began, the brand has seen the cost per acquisition come down“dramatically” and has increased its marketing activities with an authentic touch in the campaign creation. The company has always done a lot of Facebook and Instagram ads, radio and podcast spots, and direct mail, and the CEO has taken crucial role in the content creation: ““I have become an expert at how to record a radio spot in my house under a blanket,” Amy says.
That’s it for this week’s good marketing news. Don’t forget to tune in next Monday and stay positive!